NVIDIA (NVDA) Invests $2B in CoreWeave, Expands AI Data Center Partnership

NVIDIA Corporation (NASDAQ:NVDA) is among Goldman Sachs’ top semiconductor stock picks. On January 26, NVIDIA Corporation (NASDAQ:NVDA) and CoreWeave expanded their long-standing collaboration with a new agreement to accelerate the build-out of more than 5 gigawatts of AI data centers, or AI factories, by 2030. This move, NVIDIA said, will support the growing demand for AI infrastructure.

As part of this expanded collaboration, NVIDIA invested $2 billion in CoreWeave Class A common stock at $87.20 per share. And, the companies said they will deepen their alignment across infrastructure, software, and platform development to support large-scale AI deployments and enterprise needs. On its part, CoreWeave will build and operate AI factories using NVIDIA’s accelerated computing platform technology to meet customer demand for AI compute and data center capacity.

This move comes only weeks after NVIDIA unveiled a new generation of AI chips on January 5. The Wall Street Journal and other major publications noted that this release was earlier than the company’s typical release cadence. As such, they see this as NVIDIA accelerating its product roadmap in response to surging demand for computing power used in AI workloads.

Specifically, NVIDIA CEO Jensen Huang announced the Rubin platform at the Consumer Electronics Show in Las Vegas. The platform is named after astronomer Vera Rubin, and the company is positioning it as the successor to the Blackwell architecture. Huang said that this new platform is designed for large-scale AI training and inference in data centers. It features six new chips aimed at advancing AI capabilities.

NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor company. It designs and manufactures graphics processing units and accelerated computing platforms used in gaming, data centers, automotive, and professional visualization. The company’s primary offerings include its GeForce GPUs for gaming, RTX graphics for professional use, and data center products such as the A100 and H100 chips that power AI workloads.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Top 10 Materials Stocks to Buy According to Analysts and 10 Best Organic Food and Farming Stocks to Buy Now.

Disclosure: None. This article is originally published at Insider Monkey.